Dalton, GA, June 17--Tandus Group, Inc., which includes Collins & Aikman Floorcoverings, Inc., and subsidiaries, announced its financial results for the first quarter (13 weeks) ended May 1, 2004.
Consolidated net sales for the 13 weeks ended May 1, 2004 increased 8.5% to $77.7 million as compared to $71.6 million for the thirteen weeks ended April 26, 2003. Net sales of the Company's floorcovering segment increased 9.7% to $70.0 million for the 13 weeks ended May 1, 2004 versus the $63.8 million for the 13 weeks ended April 26, 2003. The floorcovering segment's increase was due to improved demand throughout the specified commercial market in the United States. Net sales of the Extrusion segment were $7.7 million for the 13 weeks ended May 1, 2004 as compared to $7.8 million for the prior year period.
Cost of goods sold was $51.4 million for the 13 weeks ended May 1, 2004 as compared to $48.3 million in the 13 weeks ended April 26, 2003. As a percentage of sales, these costs decreased to 66.2% from 67.5% for the 13 weeks ended May 1, 2004 and April 26, 2003, respectively.
Selling, general and administrative expenses were $21.0 million for the 13 weeks ended May 1, 2004 compared to $17.5 million for the 13 weeks ended April 26, 2003. The increase was primarily due to increased salaries, taxes and benefits of $1.0 million, sampling and related costs of $0.3 million, commissions of $0.4 million, advertising and other of $0.3 million, currency exchange costs of $0.9 million and legal expenses of $0.6 million. The increased salary costs are related to continued implementation of the Company's selling strategy and the legal and professional fees relate primarily to costs associated with the Employers Mutual Insurance Companies lawsuit and trial which have been previously disclosed.
Adjusted EBITDA was $8.1 million for the thirteen weeks ended May 1, 2004 as compared to $10.2 million in the 13 weeks ended April 26, 2003. The decrease in adjusted EBITDA was primarily due to the $1.6 million reduction in Chroma cash dividends and higher selling, general and administrative cots in the period partially offset by increased gross margin related to higher sales. During the 13 weeks ended April 26, 2003, Chroma distributed a special cash dividend related to the refinancing of its debt.
Effective May 1, 2004, the Company amended its Senior Credit Facility to revise certain covenants. The Company was in compliance with all covenants as of May 1, 2004.
